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Apprenticeship Reform Update

London Councils Apprenticeship Sub Group Negat Lodhi Skills Funding Agency Employer and Delivery Services Manager Why are we reforming Apprenticeships?

• To meet the needs of the future economy and businesses. • To ensure Apprenticeships are more rigorous and responsive to the needs of employers following Richard Review • Apprenticeships viewed with the same esteem as University • The changes will build on existing strengths What are the main aims of the reforms?

**High quality** Higher expectations of English and Maths, more assessment at end of Apprenticeship and introducing grading.

**Simple** Complex frameworks to be replaced by standards of around one page written by employers.

**Employer driven** Ensuring rigorous training that will support economic growth. What changes are we making to Apprenticeships?

- Standards designed by employers will replace existing Frameworks.

- New standards will be clear and concise, written by employers and no more than two pages long.

- All Apprenticeships will have an end-point assessment.

- Apprenticeships will be graded for the first time.

- All Apprenticeships will last a minimum of 12 months. What does this mean for Apprenticeship assessment?

- Employers want successful apprentices to be fully competent in their chosen occupation.

- All new apprenticeships will have an end-point assessment - apprentice will be required to demonstrate competency across the whole standard.

- End-point assessment will be synoptic – assessing skills and knowledge in an integrated way – and will be graded.

- Trailblazers will set out their high level approach to the end-point assessment – what, how and who should assess. How will we deliver the reforms?

- **Trailblazers** are leading the way in implementing the reforms.

- Trailblazers are led by large and small employers. They are leading the way in developing new Apprenticeship standards and assessment approaches for key occupations in their sectors.

- **Over 400 employers** are involved in the Trailblazers so far.

- They are building on what already exists to ensure that professionalism and quality in training are the primary focus. Phase 1 Trailblazers

- Covered the following 8 sectors, developing 11 standards:

  - Aerospace
  - Automotive
  - Electrotechnical
  - Energy & Utilities
  - Digital Industries
  - Food & Drink Manufacturing
  - Life & Industrial Sciences
  - Financial Services

- Detailed assessment plans due to be published Autumn 14

- First starts anticipated in 2014/15 contracting year

- All starts on the new standards will be funded using the new funding system Trailblazers and Standards

Phase 2 Trailblazers • On 20th August 2014 we published the Phase 2 of the Trailblazers in 29 sectors, developing 40 more Standards • As with Phase 1 they worked to the published Guidance for Trailblazers • May be limited starts towards the end of the contracting year 2014/15

Phase 3 Trailblazers • Criteria for Phase 3 Trailblazer selection published • Successful Trailblazers to be announced September 2014

## Phase 2 Trailblazer Sectors (29)

| Accountancy | Actuary | Adult Social Care | Airworthiness | Automotive Retail | |-------------|---------|-------------------|--------------|------------------| | Aviation | Butchery | Cinema | Civil Service | Construction | | Conveyancing| Craft | Dental Health | Early Years | Emerging Technologies | | Hair and Beauty | Horticulture | Hospitality and Tourism | Housing | Insurance | | Land-based Engineering | Law | Maritime | Media | | | Property Services | Rail Design | Retail | Travel | | What funding model are we trialling in 2014/15?

- We are trialling our funding approach through the Trailblazers to learn lessons for future delivery.
- For every £1 that an employer invests in training an apprentice, the Government will pay £2.
- Extra funding will be provided to support small businesses and for younger apprentices aged 16-18. English and maths (Level 1 & 2) will also be fully funded.
- To ensure support for a wide range of apprentices, a cap will be set on the amount of core funding that we can provide. For each Apprenticeship standard this will be set at £18,000, £8,000, £6,000, £3,000 or £2,000.

## AY14/15 Funding Model for Trailblazers

### Maximum core Government contribution (£2 for every £1 from employer)

| Cap | Cap 2 | Cap 3 | Cap 4 | Cap 5 | |------|-------|-------|-------|-------| | £2,000 | £3,000 | £6,000 | £8,000 | £18,000 |

### Additional incentive payments

| Recruiting a 16-18 year old | £600 | £900 | £1,800 | £2,400 | £5,400 | | For a small business (\<50) | £500 | £500 | £900 | £1,200 | £2,700 | | For successful completion | £500 | £500 | £900 | £1,200 | £2,700 |

### Maximum total Government contribution

| £3,600 | £4,900 | £9,600 | £12,800 | £28,800 |

### Notes:

- Employer contributions if maximum funding is claimed would be £1,000 at Cap 1, £1,500 at Cap 2, £3,000 at Cap 3, £4,000 at Cap 4 and £9,000 at Cap 5.

- Employers have complete flexibility on what they use any incentive payments for.

- Timing of incentive payments is half after 3 months and half after 12 months for 16-18 payment, single payment after 3 months for small business payment, and directly on successful completion for the completion payment.

- All funding still routed from SFA direct to provider during AY14/15. What is the timetable for reform?

- The **Trailblazers will pave the way** for full implementation of the reforms during 2015/16 and 2016/17.

- The aim is that **all new Apprenticeship starts from 2017/18** will be on the new programme.

- As the new standards are developed and agreed, we will **cease funding Apprenticeships under former frameworks**. Where can I find out more?

Trailblazers Guidance and detail about Funding Trial: www.gov.uk/government/publications/future-of-apprenticeships-in-england-guidance-for-trailblazers

Published standards: www.apprenticeships.org.uk/standards

Additional standards in development: http://www.apprenticeships.org.uk/employers/steps-to-make-it-happen/apprenticeship-standards-in-development.aspx

If you are interested in getting involved, you can email: apprenticeship.trailblazers@bis.gsi.gov.uk Other Updates

• Get in go far campaign – www.apprenticeships.gov.uk • GLA and London LEP campaign • Apprenticeship Awards • Apprenticeship week, 9th – 13th March 2015 Any Questions?